About this Show

Special Report With Bret Baier

News/Business. Bret Baier. The latest news from inside the Beltway. New.

NETWORK

DURATION
00:59:59

RATING

SCANNED IN

SOURCE

TUNER

VIDEO CODEC
mpeg2video

AUDIO CODEC
mp2

PIXEL WIDTH
720

PIXEL HEIGHT
480

TOPIC FREQUENCY

Washington 9, New York 6, Arizona 6, Massachusetts 6, Perry 5, Garrett 4, U.s. 4, Scott Brown 3, Fox News 3, Steve 3, Afghanistan 3, Islam 3, Greg Palkot 2, James Rosen 2, The Union 2, Iran 2, Rattner 2, Pelosi 2, Claudia Cowen 2, Malone 2,
Borrow a DVD
of this show
  FOX News    Special Report With Bret Baier    News/Business. Bret Baier. The  
   latest news from inside the Beltway. New.  

    September 3, 2010
    6:00 - 6:59pm EDT  

6:00pm
surely rather honest questioning over blindfolded fear. he wants you find him if he exists. from new york, good night, from new york, good night, america. captioned by closed captioning services, inc >> chris: companies hire more workers while unemployment increases. we'll explain the math. hurricane earl is downgraded but it's still a threat. and why republicans think senate win could help them take back the house. live from our studio in washington, this is "special report." good evening. i'm chris wallace in for bret baier. president obama was quick today to point out the good in an otherwise bleak economic picture. senior white house correspondent major garrett has both sides of the story. >> i want all americans to remind themselves there are better days ahead. >> reporter: president obama stood with the economic team now hard at work for new ideas to boost economic growth to say today's lackluster job numbers could have been worse. >> our markets remain the
6:01pm
most dynamic in the world. our workers are still the most productive. we remain the global leader. in innovation, in discovery. in entrepreneurship. >> reporter: first the good news, private sector jobs rose by 67,000. and july's private sector hiring was revised upward from 71,000 to 107,000. in the last eight months, the economy added 723,000 new jobs. but these and other numbers reflect decelerating growth that it wasn't supposed to be this way. remember, vice president biden declaring not so long ago this would be the recovery summer? >> this summer, you're going to see even more ripple effect out there. this is the act is now as i said, the pace on the ball is moving in the highest gear here in terms of direct investment in projects. >> reporter: any regrets about the slogan, mr. president? >> i don't regret the notion that we are moving forward, but because of the steps we've taken.
6:02pm
we are moving in the right direction. we just have to speed it up. >> reporter: the bad news in august outweighs the good. overall, the economy shed 54,000 jobs as 114,000 census worker received their pink slips. manufacturering lost 27,000 jobs. the service sector, 54,000. construction contracted by 19,000 jobs and retail loss just under 5,000. new national survey found the service sector expanded at the slowest rate in seven months. as a result, economic anxiety now dominates the landscape. 46% in the latest fox news opinion dynamics poll say they are extremely concerned about the economy. 32% say they are extremely concerned about paying their own bills. nearly a quarter share that elevated anxiety about simply keeping the job they currently have. >> what is obvious all across the country but apparently not obvious in the rose guard season that the economic policies of this administration have failed. in order to change that
6:03pm
perception, the president will devote almost all of his time next week to the economy, a speech on monday and follow-up speech on wednesday where he will outline most of the economic proposals to be submitted to congress. he will follow it up with a press conference to the white house next friday. chris? >> chris: i can't help but let it go without mentioning the fact that that was your final report for "special report." on behalf of all of us at fox news in washington and all of our viewers, i want to thank you for awfully good reporting. >> thank you. thank you for the audience and roger for the opportunity. i'm moving on to another opportunity but i'll cherish my years at fox. >> chris: for the final time, major garrett reporting from the white house. thank you for that. >> thank you, chris. >> chris: stocks were up today. dow added 128. the s&p gained 14-1/2. nasdaq was up 33-3/4. there is a new plan to put unemployed americans back to work at jobs they might not otherwise take.
6:04pm
while some argue the effort could help secure the border, others say it's just a stunt that could put a dent in your wallet. correspondent claudia cowen takes a fair and balanced look. >> reporter: unemployed americans can find work on farms. that's the message the united farm workers of america is trying to get across with its take our jobs campaign. in response to calls for a crackdown on illegal immigration, the union is offering to train citizens to get food from field to truck to table. >> we are giving that opportunity to any american that is unemployed right now that really wants to see how it is to work in agriculture today. >> this is not a job training opportunity. this is a political stunt designed to continue to push the idea we need to keep the borders order to allow illegal aliens to flood in the country. >> union organizers say anyone is welcome to take them up on their offer but few have. given the back-breaking labor and the difficult working conditions.
6:05pm
>> the fact you are working in the hot sun, 100 degrees plus, there is no air conditioning out there. often time there is no shade for the workers. they're not ready to tolerate those conditions. >> critics offer those conditions and the low wages are perpetuated by the influx of the cheap mexican labor. securing the border would result in a labor shortage. driving up wages and competition. >> there aren't jobs people won't do. there are only wages people won't accept. if we saw fairer wages more would line up for job. >> the "fair wages" would mean significant price hike for produce leaving stores and shoppers to choose between cheap fruit and vegetables from south of the border or higher priced goods picked from the neighbor. in this economy, the union says that is no choice at all. critics insist a small price to pay for purting americans back to work and securing the border. in davenport, california, claudia cowen, fox news.
6:06pm
>> chris: hurricane haerl is swirling up the eastern seaboard, weakened by likely to disrupt some labor day plans. rick leventhal is in new york. good evening. >> reporter: good evening. tropical storm watch still in effect for the eastern end of long island. we have heavy bands of rain and winds to top out at 45-55 miles per hour. new york is spared the worst of hurricane earl, but they are getting pounded by ferocious waves out here that forced officials to close beaches for another day, because going in that water could be deadly. hurricane earl may have weakened to a category one storm, but it's still packing powerful winds and punishing rain. pounding beaches and coastal communities on the way up the east coast from north carolina to long island and on to main. earl still poses a danger to beach-gores this holiday weekend. >> beach erosion is an issue.
6:07pm
we'll see the storm surge and the heavy rain. and the possibility for the hurricane force winds. >> officials are warning of strong rip tides even after the storm moves on. it's blamed for two deaths of the young men who ventured in the surf in new jersey. >> we have incredible weather for the next three days. that's our concern. the next two days in managing people on beach. >> hurricane earl churned through the north carolina outer banks friday. >> very difficult to stand in this. >> while the eye of the storm stayed well offshore, the eastern edge of the state saw heavy rain and flooding. residents in massachusetts scrambled to brace for the storm, buying emergency supplies and preparing for worst. >> people came in for batteries, casting oil. >> we put stuff on the windows. we have eight-foot windows that wiggle and bow. >> on long island east, state of emergency is in effect. still, many tourists seem unconcerned. >> going to get a little bit of wave action. some wind, but nothing
6:08pm
serious. >> we're on the beach. so we are worried if our luggage is really floating in the room. no, we'll be fine. >> except for our hair. our hair will not be fine. >> other than that we're okay. >> no one is okay if they go in the water, at least for a couple more days. vive lent surf will be -- violent surf will be around for a while. the bad weather is expected to clear up by later tonight and the rest of the weekend through labor day looks fantastic. the news not as good for folks to the north. >> chris: rick leventhal reporting from new york. thank you for that, rick. a powerful 7.4-magnitude earthquake struck new zealand's south island. residents say they have lost power in some buildings collapsed. no tsunami alert was issued and there were just two reports of serious injuries so far. police say looters broke in to some damaged stores. the car czar's new book has the white house livid. that is straight ahead on the grapevine. and a dutch party leader with a history of attack against
6:09pm
islam finds himself in the cross hairs again. take care of your engine and it'll go far. one way i can take care of my engine? one a day men's -- a complete multivitamin for my overall health. plus now it supports my heart health and helps maintain healthy blood pressure. [ engine revs ] whoa. kinda makes your heart race, huh?
6:10pm
it was a real shock. i remember being at the hospital thinking, "i should have done more to take care of myself."
6:11pm
you should've. that's why i'm exercising more now. eating healthier. and i also trust my heart to lipitor. [ male announcer ] when diet and exercise are not enough, adding lipitor may help. lipitor is a cholesterol-lowering medication that is fda approved to reduce the risk of heart attack and stroke in patients o have heart disease or risk factors for heart disease. lipitor is backed by over 18 years of research. lipitor is not for everyone, including people with liver problems and women who are nursing, pregnant, or may become pregnant. you need sime blood tests to check for liver problems. tell your doctor if you are taking other mecations, or if you have any muscle pain or weakness. this may be a sign of a rare but serious side effect. dean will never forget what he went through. don't take your health for granted. [ male announcer ] have a heart to heart with your doctor about your risk. and about lipitor.
6:12pm
>> chris: american diplomats met together with south korea enjoy to the stalled north korean nuclear talks. this is as a new round of naval exercises involving u.s. and south korean forces is set to begin sunday. the exercises are the second in a series of planned joint maneuvers after the sinking of a south korean warship blamed on the north. in the southern afghan city of gazni, grenade attack wounded a candidate in this month's parliamentary elections. political attacks there have been escalates. in the southwest, secretary gates checked in with the troops and correspondent james rosen has that story. >> secretary gates spent close to six hours in southern afghanistan where 28,000 coalition troops, 70%
6:13pm
of them americans are partnering with afghan forces in a critical campaign against the taliban, meeting at camp nathan smith with the fourth battalion infantry commission. >> you're in the fox hole. there will be more tough days ahead. you know that better than anybody. >> fighting under british command, afghan-led force sustained two casualties, and speaking a gateway -- seeking a gateway district where the soviets in their occupation never captured. >> there were no civilian casualties and they turned over a tremendous amount of i.a.d.s. the buzz of the people was very, very positive. >> throughout kandahar, the americans made heavy use of intelligence and special ops and recently fortified a key border crossing with a battlefield surveillance brigade. >> that brigade has the assets to enable us to gain better appreciation of how
6:14pm
explosives enter the country, where the rat lines are from sanctuaries and so forth. >> they are a few football fields away from taliban invested village. >> the hardest fight will be this the south. it has been in the past and probably continue to be. by inference it seems to me that that as the taliban considers this very important. >> the last time secretary gates visited southern afghanistan was in march. the aides say the meetings with the rank and file seasonals give him the sustenance they need to return home to washington. make sure the fighting men and women have what they need to succeed. travelling with secretary gates in kandahar, james rosen, fox news. >> chris: officials in pakistan say two suspected u.s. missile strikes killed seven suspected militants in the northwest tribal region.
6:15pm
the strike came hours after a suicide bombing targeting minority shiites killed at least 44 people. sectarian attacks are rising in the same area of pakistan already hit hard by flooding. the head of the international atomic energy agency has asked israel to consider signing the nuclear non-proliferation treaty. this is as iran's military chief warned his country could strike israel nuclear facilities if israel were to attack iran nuclear site. meanwhile, iranian opposition leader was forced to defend himself when pro-government militia men attacked his house with home made bombs. a dutch politician threatened in the past over his criticism of the islamic faith is now facing a new threat. while guert vilders the most heavily guarded lawmaker, the latest warning is cause for real concern. greg palkot has the story.
6:16pm
>> far right dutch politician is in the spotlight again. in an interview aired on australian tv this week, he made several well-known attacks on islam. including this. >> our culture based on christianity, judaism and humanism is better than the retarded islamic culture. this is tough to say but it's true. >> this prompted cleric that is well known on jihadi websites to issue a death threat against him. >> if there was an islamic leader and someone mocks his plan, tell someone about his plan, the leader of his plan will say okay, bring forward. if it's justified that he did, this it's been concerned, behead him. chop his head off. >> a security source says the threat could have been made earlier in response to a 2008 anti-muslim film. experts say it's still worrying. >> if the threat is made like this was, it would be remiss to dismiss someone fantasizing. >> the threat seems more critical because of the murder and attempted
6:17pm
decapitation in 2004 of the maker of another film critical of islam, van gogh. he says he is shocked by the let and claims he wasn't informed. dutch authority tells fox he receives the highest level of protection possible. meanwhile, vilders is riding high. he has been pressuring other parties about a role in a yet to be formed new government. his words are tapping into a growing anti-immigrant mood in holland and beyond. >> his message does resonate in certain parts of europe and america. >> in fact, in a move bound to stir up more controversy, he is set to come to new york next week to speak out about the planned mosque at ground zero and charges for inciting hatred against muslims and says he is innocent. greg palkot, fox news. >> chris: we will tell you where the jobs are in the weak economy, later in the program. first, how scott brown's senate win in massachusetts
6:18pm
could effect the november mid-terms.
6:19pm
6:20pm
6:21pm
>> chris: a court order in michigan has left a group calling itself, "the tea party off the november ballot." the state court refused to take up appeal of lower court ruling. tea party and activists consider the group in question democratic supported fake aimed to siphon votes away from conservative candidates. the race for president obama's former illinois senate seat is neck in neck. in the latest tribune wgn survey, republican mark kirk and democrat alexi giannoulias are tied. each with 34% of the vote. 22% are still undecided. vermont judge says he will try to speed up the recount
6:22pm
of ballots in the democratic primary for governor of that state. doug racine requested the recount after peter won by 927 votes in the primary. recount is set to begin on wednesday. republican hoping to make a breakthrough in typically democratic massachusetts have learned from the special election for ted kennedy seat that anything is possible. chief political correspondent carl cameron looks at the scott brown effect and the possible impact on washington's balance of power. >> we're focussed and disciplined. >> massachusetts state governor and former cop jeff perry leads the primary poll for the seat for g.o.p., establishment and independent party support. >> this is one of the seats that could change whether nancy pelosi is still the speaker or not. >> republican scott brown won big in the region in his
6:23pm
stunning u.s. senate win in january. the g.o.p. hopes his popularity and support will now help perry pick up a seat democrats are expected to have trouble defending. income can bent democrat bill delahunt is retiring and the two primary hopeful, keeting and rob o'leery are considered beatable by perry in the fall. perry has political baggage and in the september 14 primary faces a tough and vocal g.o.p. rival. former state treasurer malone says perry is damaged good. >> when he was with the police he had to resign because there was a major scandal he was involved in. >> one of those working on my shift inpromerly touched a couple of young girls and he was prosecuted, terminated and fired and now my political opponents want a guilt by association thing to make me look bad as a supervisor. >> but he hits perrier more. >> a bogus degree from a
6:24pm
college. he was trapping innocent motorists. >> far behind in the poll and money and no endorsement of any significance so people understand what is going on. negative style campaign and it won't work. >> malone has a past, too. when he was state treasurerer, his aides ripped off taxpayers for $9 million. >> i called the attorney general and did all i could do to cooperate. they went to jail. >> two other less competitive republicans are also on the ballot. but split on the relevance of their opponent's past problems. >> they're good guys. wofr wins this primary i'll support them -- whoever wins the primary i'll support them sglflt. >> i hope they look at their integrity. >> perry's rivals hoped it would create a perfect storm to undermine momentum in the final week-and-a-half but instead, massachusetts is facing hurricane earl and the tenth congressional district is almost the entire southern coastline and almost sure to freeze the race as it is,
6:25pm
taking attention off the politics and focussing on the storm for next week. carl cameron, fox news. >> chris: the latest fox news opinion dynamics poll puts congressional approval at 22%. that is one-point higher than july. in the generic vote for congress, 37% now say they would vote for democratic candidate. 46% say they would support the republican. that's up two points since last month. more than three-quarters of all those polled say they support term limits for all members of congress. while the g.o.p. has been out of power and president obama has been in the white house, republicans have built up a wish list of probes they'd like to conduct if they -- if and when their fortunes change. we report on the power to bang the gavel. >> if republicans regain control of the house, some pledged investigation of obvious controversies such as charges the new black party panther intimidated voters at
6:26pm
a polling place in 2008 or more of the questionable activities of the group acorn. >> it's very clear that house republicans are going to use their oversight powers when they get elected. there is no question about it. >> california republican darrell issa has been pushing an investigation whether the white house unlawfully offered a job to democratic candidate joe sestak so he wouldn't run against arlen specter. >> a clear reading of the law, you believe they committed a crime. i believe they committed a crime. >> he pushed investigation of shenanigans at the management mill ral service and of the fda and food safety before the egg recall. those are not partisan but the democrats warn supports the republicans will go crazy if they win control of the house. >> it's clear that a lot of them are chomping at the bit to do the kind of investigations ala clinton style impeachment hearings. i don't think people want to
6:27pm
go back to that. >> representative dan burton went after the clinton white house with a vengeance, issuing 1,052 subpoenas from 19 1997-2002. lanny davis was in the white house under clinton. >> better use of tax dollars than chasing cheap shots using the power of the congressional subpoena. >> i don't think you will see them going after the white house as rabid as republicans did in the 1990s and it backfired. >> when clinton's popularity rose. both parties tend to overplay their hand focussing on three investigations of ronald reagan's labor secretary. >> we rode from washington indicted and i quitted in less than an hour. >> what would republicans do if they regain control? issa says he is not focussed on securing the obama white house that he and republicans are focussed on the legitimate issues of oversight to keep federal bureaucracy from abusing the power. >> they don't want to come if
6:28pm
there and yahoo it for the next two years and wait until the next presidential elections. they learn lessons from '94. >> one republican notes there is a massive expansion of federal spending and says congress has to make sure people know what is being done with their money. in washington, jim angle, fox news. >> chris: the white house is lashing out at the former car czar for what he says in the new book. why one candidate was left speechless literally during her debate for governor.
6:29pm
welcome to progressive. nice calculator. i'm just trying to save money on my car insurance. you know, with progressive, you get the option to name your price. is that even possible? uh, absolutely. trade?
6:30pm
and i still get great service? more like super great. oh, you have a message. "hello." calculator humor. i'll be here all week. i will -- that was my schedule. the freedom to name your price. now, that's progressive. call or click today. so, we set out to discover the nutritiol science at purina one, we want your cat to be as healthy as possible in some of nature's best ingredients. that's how we created purina one with smartblend. nutritionally optimized with real smon, wholesome grains and essentl antioxidants, for strong muscles, vital energy, a healthy immune system, and a real difference in your cat. purina one improved with smartblend. discover what one can do.
6:31pm
♪ what the people need ♪ is a way to make 'em smile ♪ it ain't so hard to do if you know how ♪ [ female announcer ] fall for the ozarks in branson, missouri! music and nature in peect harmony! fabulous shows! shopping! lakes! outdoor adventures, and attractions for the whole family at prices that will make you smile. call 877-branson, or go to explorranson.com for speal offers!
6:32pm
>> chris: now some fresh pickings from the political grapevine. former car czar steven ratner offers the first insider account of the obama white house in the new book "overhaul" and reports suggest that he pulls few punches. early in the auto rescue president obama appears to mock the big three american car makers, quipping why can't they make a corolla? rattner was critical of the president's stance in the transition saying if his team had linked arms with the outgoing administration as president bush's advisors proposed, billions of dollars could well have been savered. and he writes chief of staff rahm emanuel ruled by a mixture of respect and fear. he quotes emanuel saying blank the u.a.w., referring to the united auto workers
6:33pm
union. the white house is pushing back against the book. candidate for governor in at least 20 states are making immigration a big issue. politico reports republicans and democrats are running on strict anti-illegal immigration platforms with many supporting tough laws like arizona. even in liberal states like massachusetts. three states that had concerns over the arizona law changed their minds after taking heat from their own party. finally, jan brewer is trying to explain this awkward pause in wednesday's primary debate that the "associated press" labelled, "one of the most painful openings in recent memory." judge for yourself. >> we have done everything that we could possibly do. [ pause ] we have, um -- did what was
6:34pm
right for arizona. >> chris: that, folks, was her opening statement. brewer now says when she calls a brain freeze only took 16 seconds to reshape her national image. and that she won't participate in my more debates. our top story at the bottom of the hour, the private sector added 67,000 jobs while the unemployment rate increased from 9.5 to 9.6%. that doesn't mean there are no jobs out there. with a look at what sectors are hiring in the weak economy, here is fox business network correspondent peter barnes. good evening, peter. >> hey, chris. lots of companies throughout are hiring. some banks, hotel, tech firms, even car companies. some jobs require a little retraining. >> help wanted. a full-time elephant encounter supervisor.
6:35pm
at six flags discovery kingdom in san francisco. you'd be responsible for overseeing the elephant encounter area of the park, a shovel-ready job. more than 100 position six flags discovery kingdom is trying to fill now. looking for 60 part-time ghouls and zombies for the frightfest halloween program. promising applicants a monstrously good time. hiring by leisure and hospitality companies is strong in the weak job market. they hired 41,000 people in the last year. hiring by clothing retailers has been on a tear. up 36,000. home healthcare companies are nursing the economy back to health, adding 46,000 jobs. one problem, many of the positions are lower paying. >> they don't have as much money for consumption to rev up the economy and buy new houses. >> six flags says it's
6:36pm
received 15 to 20,000 application for the elephant encounter supervisor position. a salaried position. so whoever gets it won't have to work for peanuts. >> chris: you didn't have to say that. >> oh, yeah, i did. >> chris: okay. thank you, peter barnes. the economy may have gained some private sector jobs, but unemployment continues to rise. what is president obama's next move? we'll hash it out with the panel when we come right back. ♪ [ male announcer ] there is nothing more profound than hope. it is the promise that compels us to make the journey from wonder to discovery. the science of chemistry, our guide. the human element, our conscience. and to make this journey, we have become the new order of hunters and gatherers. finding answers in the elements. and a way forward illuminated by hope. the one thing about smoking -- is it dominates your life,
6:37pm
and it dominated mine. i honestly loved smoking, and i honestly didn't think i would ever quit. ♪ it was very interesting that you could smoke on the first week. [ male announcer ] chantix is a non-nicotine pill that stays with you all day to help you quit. in studies, 44% of chantix users were quit during weeks 9 to 12 of treatment, compared to 18% on sugar pill. it's proven to reduce the urge to smoke. i did have an unopened pack of cigarettes in my purse... i said, you know, "bye, i don't need you any more, you're not my crutch, i don't need a crutch." [ male announcer ] ask your doctor if chantix is right for you. and find out how you can save money on your prcription at chantix.com. se ople have had changes in behavior, hostility, agitaon, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice agitation, hostility, depression or changes in behavior, thinking or mood that are not typical for you, or if you develop suicidal thoughts or actions, stop ting chantix and call your doctor right away.
6:38pm
talk to your docr about any history depression or other mental health problems, which can get worse while taking chantix. some people can have allergic or serious skin reactions to chantix, some of which can be life threatening. if you notice swelling of face, mouth, throat or a rash stop taking chantix and see your doctor right away. do not take chantix if you've had a serious allergic or skin reaction to chantix. tell your doctor which medicines you're taking as they may work differently when you quit smoking. chantix dosing may be different if you have kidney problems. the most common side effect is nausea. patients also reported trouble sleeping and vivid, unusual or strange dreams. until you know how chantix may affect you, use caution wh driving or operating machinery. chantix should not be taken with other quit-sming products. ♪ with the chantix and with the support system, it worked for me. [ male announcer ] talk to your doctor about chantix. find out how you can save money on your prescription and learn terms and conditions at chantix.com.
6:39pm
the economy is moving in a positive direction. jobs are being created. they're just not being created as fast as they need to, given the big hole we experienced. >> president obama putting a best spin on more disappointing job numbers today. bring in the panel. hayes of "the weekly
6:40pm
standard." nia maleka henderson from the "washington post." and charles krauthammer, syndicated columnist. the total unemployment number rose from 9.5 to 9.6%. look at the interim numbers which are more alarming. the economy lost 54,000 jobs in august. along with the revised numbers of 54,000 in july and 175,000 in june. steve, in what the white house was billing as the summer of recovery, a total of 283,000 jobs were lost. >> if this is recovery summer, the white house is bracing for recovery fall. not likely to be a good fall. looking forward, it's not getting better. contrary to what the president said. he said things are moving in the right direction. but it's not. in addition to numbers you mentioned, 331,000 people moved from full-time work to part-time work last month. talk about alarming.
6:41pm
that is alarming. the problem for the white house is they don't have anything positive to say at this point. they don't have a positive argument to make. they can't point to something and say here is what we're going to try to do. you saw this with the small business bill, he claims being held up by the republicans but i don't think it's big enough. what you have seen in the last 24 hours is the white house trying to come up with another package of more comprehensive package, including the deeper tax cuts they can campaign on for the last two months when people are really paying attention from labor day on to election. >> chris: i want to get to the package in a moment but i want to go back to the numbers we saw today. private sector rose and stock market reacted favorably to that. is there some good news in the report? >> there is some good news. nancy pelosi sent out memos today talking about the good news on this, including small
6:42pm
business tax cuts that are a part of the law here. the other numbers are so stark. if you look at 70% of americans actually think that the recession, that we are still in a recession. if you -- i travel around the country and i talk to folks and i've been in focus groups. everyone has the same question. that is, where are the jobs? we'll see the president reset or restart his messaging next week. he will talk to the unions and he will be in cleveland, ohio, talking about the economy. friday, there will be a press conference but it's hard to see it gaining traction. >> talk about that. the white house did say today that the president is going to is a new package of ideas to help get people employed. and in the "washington post" today, they were talking not about spending, but about tax cuts. specifically tax cuts targeted for business. one of them was a temporary payroll tax holiday.
6:43pm
first of all, are the idea of tax cuts a good idea? would it corner republicans because it's something they have trouble opposing? >> a republican idea, conservative idea and a year-and-a-half late. this is what republicans were talking about the beginning of the obama administration when the stimulus was proposed. and he would have had a lot of republicans supporting him. he would have had a lot of them on board. had he gone with a larger package of tax cuts, particularly a cut in the payroll tax which is the most direct way to attack unemployment. it lowers the cost of hiring. when you lower the cost of "x" you get more "x." fairly elementary. instead he went for spending. essentially spending. >> >> there were some tax cuts in the stimulus. >> they were insignificant. if they worked he wouldn't be proposing this now. the fact is that the bulk of it was absolutely wasted on spending. a lot on temporary jobs which
6:44pm
are going to disappear. as a result, right now, this is clearly aimed at the election. clearly aimed at trying to propose a plan that he thinks will have appeal to independents. perhaps even republicans late in the game. it will have no effect on the actual economy between now and november. he is hoping it will have an effect on politics and on the voting in november. but it won't. >> chris: well, that's leading me to the next question. why won't they? >> i anticipated it. >> chris: as always. >> because it's late, it's obvious, it's plagiarized on election eve. you don't have to be a genius to understand that this is something that obama never believed in, and all of a sudden he becomes a believer. >> chris: does it corner republicans? in other words, if democrats bring it to a vote would republicans have to go along and democrats can say this is big bipartisan success? >> republicans might but it's not going to have any effect on the election. what has the effect on the
6:45pm
election is the state of the economy. the fact that obama and the democrats proposed trillion dollar stimulus that did not work. >> chris: steve, one other thing that we'll almost certainly see and a reference to that today as well is the tax cuts and the democrats are likely to propose keeping the middle class tax cuts, the bush tax cuts but letting the tax cuts for the wealthy expire. could that put republicans in a box? >> it could but not likely to. you have a position now where you have probably i say 10 to 15 democrats in the senate who would like to see the tax cuts extended. basically the republican view on that, position on that. if you have 10-15 in the senate, you probably have 50 to 60 to 70 in competitive house districts who are not at this point going to make an argument saying we should raise taxes in a recession. whatever the merits and you can make the class warfare argument but the effect is
6:46pm
raising taxes in a recession with virtually everybody believes it's a bad idea. >> chris: we have 30 seconds left in the segment. what happens? do they end up not passing anything by the end of this year and it goes to the next congress? or did the democrats admit defeat and accept extenting all the tax cuts at least temporarily? >> they may be able to cobble something together and extend these tax cuts for everyone. nancy pelosi certainly is afraid that they are going to let the, extend them for everybody. she -- >> chris: including the wealthy. >> exactly. including the wealthy. i think we have to wait and see and see how it plays out. no matter what it will be a big issue for the campaign. >> chris: all right. read more about the economy and the administration's plans and the show note section of the home page at foxnews.com/specialreport. up next, friday lightning round. lp<@
6:47pm
6:48pm
6:49pm
6:50pm
>> chris: every week on the foxnews.com/specialreport page, viewers vote on the topic we should discuss first in the friday lightning round. tonight's winner is immigration. so, stephen hayes, it turns out as we reported earlier in the 37 races for governor across the country this november in at least 20 of those states, including massachusetts and iowa, that in some cases republicans, some cases democrats, some cases both have endorsed an arizona-style crackdown on ill leam immigrants. will immigration be a voting issue this november? >> it always threatens to be a voting issue and it rarely is a voting issue. this year could be different. you are seeing candidates embrace arizona, but how many have we seen reported on that says it goes further than
6:51pm
arizona? that is happening in wisconsin where i was a couple weeks ago. scott walker, the republican governor says i want arizona-plus and take away public funding from the illegal immigrants. >> it also feeds in a narrative that the federal government has been asleep on the job in terms of immigration and come place sant and folks want -- complacent of the folks wanting to take the government back. it will be an issue. of course, i think the economy is the top issue. but i think some folks will go to voting booth thinking about immigration. especially in states like arizona. jan brewer had a little bit of a brain freeze in that debate but i think she is still probably on the winning side of this issue in arizona. >> chris: charles? >> the arizona law did is gave what is usually emorphus debate structure. obama weighed in and a lot of people who are worried about illegal immigration resented as a kind of arrogant elitism
6:52pm
coming from ivory tower in washington. that i think has made it a larger issue electorally than it normally is. >> chris: the second issue we now have the first and certainly not the last kiss and tell book from the obama white house in which the former car czar, steve rattner a figure on wall street before he came to d.c. talks about the infighting and the white house. some juicy details. he talks about the politics in decision of the auto bail-out for g.m. and chrysler. describing the president's reaction when he heard the ousted head of g.m. would stel get a $7 million severance package, rattner writes suddenly i felt that i was indeed in the presence of a community organizer. steve, your reaction to the little tidbits that have come out? it's not coming out until september. >> i have seen it describe as a tell-all but you have to know all to tell all.
6:53pm
he was a marginal player, one element of the administration's economic fight. i don't think he is in a position to talk much. what we might get, rahm emanuel swears a lot and he's really blunt. not breaking news. >> yeah, he seems to have a problem with the unions. we'll see president obama give a big embrace of unions on monday. >> chris: but he said blank the uaw. i suspect that rahm has said blank almost everything and they say it was the heat of battle and he very much support esthe uaw and all other unions. >> exactly. that was my take away. seeing rahm there talking about the unions. but we've heard him say worse things before. >> surprise, rahm is profane. i'm objection in principle for all of the books. it started in 19 #9 when jimmy carter's chief speechwriter wrote a tell-all. that's against the grain historically.
6:54pm
you have the decency to wait until after the administration. now we get a book less than a year-and-a-half in an administration. president appoints you, you ought to have respect for him and the office. and shut up until he leaves office. >> chris: what a quaint idea. >> for quaint. i'm a quaint guy. >> that's what we often call you. finally, less than two minutes left. take the temperature in afghanistan. 29 americans killed in just the last two weeks. new battles between the u.s. and p karzai about -- afghan president karzai about corruption and casualties. general petraeus has been there for two months. are we doing better, steve? >> put it in context. i expect the casualties will go up further as the fighting intensifies. that said the development on the bank, corruption, potential financial crisis in afghanistan. layered on top of the increased fighting that we're seeing and the general chaos on the ground there. no. i don't think it's going well. again, ultimately, all of
6:55pm
that is detailed if the president doesn't renounce the deadline. >> chris: we have a minute, 30 seconds each. >> yes and no. there has been progress on the ground in the south but these, you know, the karzai government is a corrupt government. what is victory going to look like in the war? >> democrats to oppose the surge in iraq which succeeded and in office they imitated that in afghanistan where the circumstances and the conditions are harder. we have a government less stable and more corrupt. nation with less sense of a nation and we don't have the anbar awakening. not surprised that the going is so tough. >> chris: that's it for panel. stay tuned for a fond but honest farewell who our colleague major garrett. úúxk@= boss: and now i'll turn it over to the gecko.
6:56pm
gecko: ah, thank you, sir. as we all know, geico has been saving people
6:57pm
money on rv, camper and trailer insurance... ...as well as motorcycle insurance... gecko: oh...sorry, technical difficulties. boss: uh...what about this? gecko: what's this one do? gecko: um...maybe that one. ♪ dance music boss: ok, let's keep rolling. we're on motorcycle insurance. vo: take fifteen minutes to see how much you can save on motorcycle, rv, and camper insurance.
6:58pm
6:59pm
>> chris: finally tonight, chances are you have heard by now this is major garrett's last day at fox news. is he leaving us to go back to print reporting. but we thought we would leave you, and him, with some reminders of the joys of reporting on television. has major had to battle the elements and sometimes even in the south. >> but there is no medicare coverage here. >> and intrepid reporter hang out there with a smile on your face. >> this issue, first of all, who is pushing for that. >> two wick questions -- did the president. >> now he has got his sunglasses and his coke out. >> leaning back. >> did the president. >> march garr rita for mr. garrett, please. double, easy. it's early yet. >> chris: good luck, major, we will miss you and plenty of margaritas in your future. that's it for "special report" tonight. please joan my on "fox news sunday." we have exclu